§ 12. Mr. Jim MurphyTo ask the Secretary of State for Trade and Industry if he will make a statement on the effectiveness of the national minimum wage in poverty reduction. [139544]
§ Mr. ByersFigures from the Office of National Statistics show that before the Government introduced the new law in April 1999, around 1.5 million workers were earning less than the minimum wage. By spring this year, that figure had fallen to 300,000. And many of those 300,000 are in receipt of training or accommodation, where lower rates can legitimately be applied.
But poverty among those with jobs is only part of the problem and the national minimum wage is only part of the solution. Initiatives such as tax credits, benefit and pension reform and the New Deal for the unemployed also have an important role to play in reducing poverty.
§ 13. Mr. RammellTo ask the Secretary of State for Trade and Industry if he will make a statement on his plans to review the reduced minimum wage for young people. [139545]
§ Mr. Alan JohnsonWe have asked the Low Pay Commission to continue to monitor and evaluate the impact of the minimum wage and to report its findings by July 2001. We have particularly asked the Commission to look at the youth rate and to continue monitoring the 21-year old cut off.